The Hindu Business Line : Capexil plea to convert Petrapole LCS into port

CAPEXIL, whose members account for substantial exports to Bangladesh, has suggested that Petrapole Land Custom Station (LCS), which accounts for 60 per cent of the total Indian exports to that country, be converted into a land port with proper port management infrastructure and personnel.

The council, whose members account for total annual exports of over Rs 21,000 crore, in a recent in-house study on `Petrapole LCS - Issues and Solutions,' has pointed out that a major problem today was the absence of accountability on efficient truck movement through the Petrapole LCS. A key concern, according to the council, was the stagnation and even a nominal de-growth in total export volume in the last three years through the Petrapole land border. The issues are basically related to infrastructure, policies and efficiency of truck movement.

Calling for an IT-enabled truck/goods movement tracking system for Petrapole, the council has stated that at present, there was no person, team or body which is responsible for timely movement of material between the two countries. Citing lack of effective coordination between different affected bodies, such as exporters, customs, local administration, local police and BSF, who at times work at cross-purposes, the council has pointed out that a single body could effectively coordinate between the different stakeholders and organisations.

According to Mr A.M.S.G. Ashokan, Chairman of the council, there was an urgent need to provide a transparent and efficient information system for the benefit of exporters and importers, as the exporters are now not able to know the progress of their shipments owing to absence of an IT-enabled truck movement tracking system. Certain vested interests manipulate information to register gains through late shipments, points out the study.

It is suggested that a land port authority may also function as a formal problem solving body, as it would be able to effectively coordinate with all concerned parties and ensure efficient handling of backlogs and pile-ups.

In a bid to remove barriers and delays to export shipments, the council has suggested immediate construction of a bypass road of around 5 km, avoiding the border town of Bongaon.

It is suggested that to ensure smooth movement of cargo in good condition from Kolkata to Petrapole (a distance of 95 km), an expressway could be constructed, bypassing all crowded towns now connecting the existing road. Truck movement through Bongaon town during daytime is not allowed owing to narrow roads and disruption of normal life in town. At present, it takes anywhere between three and four hours to traverse the 95 km distance between Kokata and Petrapole.

Pointing out that exporters do not benefit by parking their trucks at the Kalitala parking lot in Bongaon town, Capexil has stated that the core committee which tackles all Petrapole problems now, should be convinced to forgo the cess it levies on trucks moving to the border.

Lamenting the absence of warehousing facilities at Petrapole, for both export and import, Capexil has suggested that if faster turnaround of incoming trucks has to be achieved, there was a need to evaluate the number and size of product-specific warehouses to be built on the Indian side. Given the move to reduce the huge trade imbalance between the two countries, imports are likely to increase manifold in the coming years, it is pointed out.

The council has recommended that as a starting point, warehouses for jute should be built, since this was the single most voluminous incoming item, now unloaded on to a small stretch of no man's land back to back onto trucks. The Bangladesh side has item-specific godowns.

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